The role of payments in digital finance

This thesis investigates the role of payment in digital finance through a collection of papers that delve into theoretical, empirical, and policy-centric aspects. The first paper sets the thesis in the domain of policy-relevant research and connects the literature on digital finance with current policy discussions. The review covers topics such as technology-based lending, distributed ledger technology, and the impact of emerging technologies on supervisors' practices. It highlights the need for collaborative efforts between academia and supervisors to propel future research. The second paper analyses the impact of open banking policy on financial intermediaries. It examines the effects of open banking frameworks on loan interest rates and emphasizes the role of regulators in mitigating challenges. The third paper investigates the role of payments in financial intermediation, especially during the COVID-19 pandemic. It highlights the impact of payment systems on systemic risk and emphasizes the importance of an optimized capital structure and timely government intervention in averting liquidity shocks. In conclusion, this thesis offers nuanced insights into digital finance, covering policy implications, open banking frameworks, and systemic risk dynamics. It provides a comprehensive understanding of the evolving financial landscape and is relevant to academic discourse and policy-makers.